Nutrition and Wellness Programs

Labor Costs Guidance for Contracted Schools Participating in the Fresh Fruit and Vegetable Program

Fresh Fruit and Vegetable Program (FFVP) schools that contract with a food service management company (FSMC) are unique when it comes to determining what labor costs may be claimed for FFVP reimbursement. If your school has a contract with a FSMC for the operation of the National School Lunch Program AND you plan to use the FSMC employees for the preparation of the fresh fruits and vegetables for the FFVP, it is important to ensure that both the FFVP grant and the school district are properly invoiced for labor.

When a district has a contract with a FSMC, the per meal rate that is paid to the FSMC is inclusive of all labor and benefits related to the performance of that contract. Claiming FFVP reimbursement for FSMC labor and benefits that occur during the normally contracted work day would result in an overcharge for labor costs. Since the FSMC labor is already paid for through the per meal rates, the same hour would be billed twice.

Therefore, only FSMC labor and benefits that occur above and beyond the normally contracted work hours may be claimed for FFVP reimbursement. Options that may be claimed for FFVP reimbursement include, but are not limited to the following: FSMC employees may work extra hours prior to or after their normal contracted work day, additional employees may be hired, or school personnel may perform the tasks necessary to implement the Fresh Fruit and Vegetable Program.

In summary, the two scenarios are as follows:

Labor (and benefits) incurred by FSMC employees during normally contracted work hours may not be claimed for FFVP reimbursement;

Labor (and benefits) incurred by FSMC employees above and beyond the normally contracted work hours may be claimed for FFVP reimbursement.

If you have questions regarding the proper method for claiming FFVP reimbursement for FSMC labor and benefits, please contact Denise LeFever at 800-545-7892.